₹4 Crore Ayushman Scam at SKIMS: From Suspensions to Shocking Reinstatements

Srinagar: What began as a routine inquiry at the Sher-i-Kashmir Institute of Medical Sciences (SKIMS) in 2023 has escalated into a major controversy involving alleged financial irregularities, administrative reversals, and serious concerns over accountability in the Ayushman Bharat (AB-PMJAY) scheme.

The issue first came to light in May 2023 when three pharmacists, including the then Chief Pharmacist, were suspended after an inquiry revealed large-scale lapses in the verification of medical bills. The investigation found that hundreds of files had been cleared without proper scrutiny, resulting in overbilling, pricing discrepancies, and violations of agreed discount norms.

The findings pointed to systemic negligence, with technical verifiers failing to cross-check bills against market rates and Maximum Retail Price (MRP) guidelines. This led to inflated claims and questionable payments to vendors.

Recognizing the seriousness of the issue, then Director Dr. Parvez Koul convened a high-level meeting attended by 23 senior faculty members, including key finance and administrative officials. In a rare consensus, the group recommended a third-party vigilance probe, noting that over 1,200 files required detailed auditing and that the suspected embezzlement warranted an independent investigation.

However, the course of action changed following a leadership transition. The current Director, Dr. Ashraf Ganaie, opted for an internal audit instead of pursuing the recommended vigilance probe, raising concerns about transparency and institutional accountability.

Ironically, the internal audit confirmed major discrepancies. By October 2025, it flagged irregularities estimated between ₹3.5 crore and ₹4 crore. These included excessive vendor payments, manipulation of billing records, violations of MRP norms, and inconsistent deductions in breach of Memorandum of Understanding (MoU) terms. In several cases, comparisons between audit findings and original bill checks revealed glaring mismatches, exposing deep systemic flaws.

Despite the audit holding the three suspended officials responsible and recommending strict action, the administration took a surprising turn last week by reinstating them, triggering fresh controversy.

The development has raised critical questions. If irregularities worth nearly ₹4 crore have been established, why was the recommended vigilance probe not pursued? Does the reinstatement undermine the findings of negligence recorded by official committees?

Insiders suggest the issue goes beyond individual lapses, pointing to a broader institutional failure where multiple layers of verification, supervision, and financial oversight broke down simultaneously.

Nearly three years after the first red flags, the SKIMS Ayushman case remains unresolved, marked by conflicting decisions and unanswered questions. At its core lies a larger concern whether internal reviews can ensure accountability when the system itself is under scrutiny.